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Re: Driven By Customer 'Service' Parte Dos
Boston Globe - July 11, 2009
Boston Globe - July 11, 2009
Op-Ed
Getting the T back on the right track
By Daniel Grabauskas | July 11, 2009
IT?S BEEN a roller coaster ride for public transportation in the United States over the past two years. Last year, there were 10.7 billion passenger trips on public transit services across the nation, a 52-year high. The Massachusetts Bay Transportation Authority also experienced the busiest year in its history, with nearly 385 million trips made on T services. But something else has happened across the nation. Faced with soaring operating costs and growing budget deficits, major transit systems have been forced to implement drastic service cuts and/or significant fare increases. A variety of economic conditions have led to unprecedented revenue shortfalls and losses in ridership. Two key factors led to a deficit of $180 million in the T?s budget for the fiscal year that began this month.
Driving the MBTA?s revenue problems is the continued decline in the T?s leading source of revenue, state sales tax receipts. The sales tax has performed worse than the most pessimistic projections, and has grown at only 1 percent annually.
The unrestrained problem on the expense side of the ledger is the MBTA?s crushing $8 billion debt burden, a large portion of which is the result of transit projects that had to be built - by law - to mitigate the impact of the Big Dig. One-third of every dollar the MBTA collects is used to make the annual interest payments on that debt. In other words, $368 million in revenue this fiscal year will go - not toward the delivery of transit services - but to pay down debt.
While the primary reasons for the MBTA?s worsening financial condition are out of the authority?s control, it is reasonable to ask what steps we have taken to mitigate the budget problems. Much has been done to both control costs and increase non-fare revenues.
A hiring freeze led to a reduction of nearly 190 employees over the past 12 months, but more cuts were necessary, and that is why an additional 96 jobs were eliminated this spring. Layoffs affected those in managerial, supervisory, and clerical roles. These staff reductions, along with the cancellations of a number of contracts with outside service providers, will save the MBTA more than $8 million annually.
The implementation of the CharlieCard system is credited with capturing millions of dollars in additional fare revenue and reducing collection costs. Backed by a new state law, Transit Police and MBTA personnel are pursuing those who think they can slip onto the system without paying their fares. Thousands of fare evasion citations have been issued to scofflaws since the law took effect.
The MBTA has also:
◼Aggressively managed overtime costs, down 45 percent since 2005.
◼Successfully negotiated with four labor unions, which have voluntarily agreed to defer, for one year, 4 percent pay raises that were granted by an arbitrator last year.
◼ Frozen the salaries of managers for a fourth straight year.
◼ Lowered healthcare costs by more than $5 million annually by implementing higher employee co-payments (20 percent), and, for the first time, co-payments by retirees (15 percent).
◼ Implemented furloughs of three to five days for all non-union employees.
◼ Increased non-fare revenue from $54.4 million in fiscal 2000 to $84.7 million this fiscal year.
◼ Required MBCR (the firm that operates the commuter rail system) to pay up to $50,000 per month toward customer refunds for late-arriving trains.
◼ Reduced, by one-third, the number of ?take home?? cars by MBTA employees.
It?s important to acknowledge state lawmakers have backed public transportation, and taken legislative action that resulted in new revenues and needed reforms. In conjunction with Beacon Hill, the MBTA has taken a leading role in making the tough decisions that are required during these struggling economic times. But on our own, we can only do so much, and that?s why it?s necessary to consider additional steps at this point.
Next month, a series of public workshops will be held around the region so that MBTA customers can discuss the proposals to increase fares and/or cut service.
Obviously, neither choice is one that anyone wishes to make, but the T must identify a multiyear solution to its structural financial problems. It?s my hope that the workshops will be well attended so that everyone who cares about the future of the MBTA will have a voice in the decision-making process.
Daniel Grabauskas is general manager of the MBTA.